Multi-billion dollar developments in Mid East announced at MECSC annual convention

The two day event, which attracted prominent business leaders, was used as a platform for announcements relating to multi billion dollar mall developments, and insights into trends within the region.

On the first day of the convention, Nakheel Retail announced five new retail space developments spanning 13 milllion square feet, and comprising five individual mega mall projects, all in Dubai.

The new projects totaling $3bn include: Palm Mall, Palm Jumeirah; Palm Mall, Palm Deira; Great Mall Dubai; Ibn Battuta Mall Expansion and India Mart.

By 2012, as a result of the new projects announced at the MECSC Convention, Nakheel Retail will be the largest shopping mall developer, owner and manager in the region.

The group is expected to be one of the largest in the world (alongside companies such as Lend Lease and Wesfield) by 2018, but spokespeople remain tight-lipped about any other projects in the pipeline.

"Nakheel is known for its iconic projects and this extends to all its divisions. With the design and delivery of five new innovative, world-class shopping malls, through our Shopping Malls division Nakheel Retail is poised to become one of the most successful shopping mall developers, managers and owners in the world."

said Mr Graham Dreverman, group managing director, Nakheel Retail

With the anticipation of a decade-long explosion in retail real estate development throughout the region, Mr John Davis, Chief Executive Officer - Middle East, Colliers International provided insights in his presentation, An Overview of the Middle East Retail Real Estate Scene.

Commenting on Abu Dhabi, the capital of the United Arab Emirates, Mr Davis said the market is bullish.

"Retail development in Abu Dhabi is immense," he added.

Mr Davis believes Abu Dhabi has approached development in a different way to Dubai.

"It is not a case of bigger is better."

According to Mr Davis, the culture of the Emirati people is completely different to elsewhere in the world, likewise their shopping habits.

The Mall concept that emerged in 2001 with the Marina Mall in Abu Dhabi, involved active education of the population.

Also seizing the opportunity to make an announcement was UAE-based Al Futtaim Group Real Estate launched their 3 million square metre development in Cairo, at the Convention.

The privately funded EGP20bn, Cairo Festival City will be a spectacular blend of contemporary themes and creative architecture, setting new standards for shopping and modern lifestyles in Egypt's capital.

Cairo Festival City is poised to be the first indoor-outdoor retail and entertainment resort combined with luxury residential communities, prime office spaces, international hotels, schools and an automotive park set within a lush landscaped environment.

"Our vision is to create a vibrant and modern community that will transform New Cairo City into a place that affirms Egypt's position as one of the most progressive and influential countries in the region." said Mr Omar Al Futtaim, CEO of Al Futtaim Group.

Cairo Festival City is just one of many interesting new retail projects underway in Egypt.

To some extent taking trade duties and dropping them to 20% has opened up the market.

The dedicated Retail Zone, a new feature at the convention for 2008, and part of the highly successful Trade Exhibition, received overwhelming praise and support from exhibitors.

"The retail zone is a positive addition, but we would like to see it expanded" said Mr Robert Schmitz, Chief Operating Officer, Hot Brands International.

"... a phenomenal number of contacts were made, literally one after the other. I felt dizzy when I left the convention yesterday, with an enormous number of business cards. We made good strong contacts and will definitely participate again next year" he added.

Hot Brands International highlighted their restaurant expansion plan at the MECSC convention which will see the UAE-born company expand into other parts of the region including the Kingdom of Saudi Arabia.

"Saudi Arabia is a tremendous part of our expansion. We will have 50 locations within the next 30 months. Currently, we are declining site offers, simply because we cannot open all 50 restaurants on the same day. The interest is overwhelming" said Mr Schmitz.

In Dubai, the group is anxiously anticipating the opening of a new Japanese outlet, "Momotaro" at Souk Al Bahar, Old Town.

"...it's a big step. Our first fine dining and licensed outlet." he added.

Schmitz sums up the feeling of several participants at the Trade Exhibition,

"It's a great time to be in Dubai. It's great to be here at this precise moment. They've prepared the swimming pool and diving board, so we can just dive in".

Aswaq Management and Services has joined a growing list of participants who are singing the praises of the convention, saying it provides a remarkable opportunity for their team to meet up with major retail groups.

"We managed to lock-in key electronics, bookstore, fashion retailers and entertainment operators for Bawabat Al Sharq Mall in Abu Dhabi. The MECSC Convention is second to none and we most definitely will be participating again in 2009" said Mr Ali Hasan, Commercial Director, Aswaq Management and Services, Abu Dhabi.

Next year, the MECSC convention will be held 16-17 March, 2009.

The 2009 convention will again feature the Conference addressing trends and key topics as well as the Trade Exhibition which features the Leasing Fair, Trade Expo and Retail Zone, the latter will be greatly expanded say organizers, in response to the phenomenal demand witnessed at this year's event.

"As the Middle East's premier networking event for the retail real estate industry, we were delighted with the attendance at this year's convention, both in terms of visitor footfall and exhibitor participation. Attendance numbers exceeded 330 conference delegates and more than 2,000 highly qualified tradeshow visitors this year, representing a doubling of numbers on the previous year. The annual convention has achieved must-attend status, and has developed to become the pinnacle event on the industry's calendar" said Ms Kim Redman, Regional Director, Middle East Council of Shopping Centres.

"This year Nakheel joined our growing list of high profile sponsors of the event which includes companies such as Aldar, Colliers, Dubai Properties, Emaar Malls Group, Burjuman, Grand Optics and Ovaz Marketing & Investment. Their ongoing support is crucial to the event's success, and raising the bar within the retail real estate sector" she added.